Temp vs Temp-to-Hire vs Direct Hire: Which One to Choose

Temp vs Temp-to-Hire vs Direct Hire

Updated November 6, 2026

What Is the Difference Between Temp, Temp-to-Hire and Direct Hire?

Temp workers stay on the agency's payroll for a set assignment. Temp-to-hire starts the same way, but the company can hire the worker after a trial, often around 90 days. Direct hire means the company employs the person from day one and pays the agency a one-time fee. Choose by how long you need the role and how sure you are.

Updated November 6, 2026 · Source: manpower.broker staffing guide; rules of thumb, so confirm terms in the written agreement.

All three can come from the same agency. The right one depends on how long the work lasts and how much hiring risk you want to carry.

Side by Side

	Temp	Temp-to-Hire	Direct Hire
Employer	Agency	Agency, then you	You
You pay	Hourly bill rate	Bill rate, maybe a conversion fee	One-time fee
Best for	Peaks, leave cover, projects	Trying before committing	Long-term, hard-to-find roles

When Each Makes Sense

Temp: the work has an end date.
Temp-to-hire: the role is lasting but you want to see real work first. Trial periods of around 90 days or 520 hours are common (rule of thumb).
Direct hire: you know the role is permanent and want the person invested from the start.

Compare the money in the temp vs direct hire calculator.

For Job Seekers

Ask if an assignment could become permanent, when that decision is normally made, and how benefits change. Do not count on a conversion unless it is in writing.

Find Staffing Agencies Near You